On Thursday Australian labour market data was published. September unemployment in the county remained unchanged at 6.2%, thus meeting expectations. Employment creation in September was down 5,100 MoM, whilst it was expected to increase by 10,500. The employment situation in the country is still not quite fitting with the Australian economy’s poor economic outlook. Employment creation in Australia is up by 230,100 this year which is just below the highest it has been for the past four years.
The Aussie dollar reacted with growth to this news, reaching 0.7350 against its US counterpart.
The Japanese government announced today that its August industrial production is down more than expected and this is increasing the risk of an oncoming recession. The indicator was down 1.2% MoM and not by 0.5% as was earlier believed. Anxiety over the slowing of Chinese growth provoked fluctuations across world stock markets and dampened the mood for companies throughout the world. As a consequence of this, Japan’s production of cars is down, along with electrical equipment and computer components.
The data that was assessed downwards came as an unpleasant surprise since preliminary assessments from 2 weeks ago already disappointed investors. Due to this, Q3 GDP for the country is likely to be down again and this would be the 2nd quarter in a row that it is down.
Today it’s worth having a look at the number of US initial unemployment benefit applications, the manufacturing index from the Philadelphia Fed and oil reserve data from the US Department for Energy.
FOMC members Dudley and Bullard are set to speak today.